Wolseley have announced an impressive 15% increase in annual turnover for the year ending July 31 2007. However, a poorer performance in the US meant profits did not jump proportionally, seeing a 10% decline in the same period.
Group turnover for the year stands at £16,221m, up from £14,158m for the same period last year. However, group operating profit slipped from £834m in 2006 to £753m. This was largely due, say the company, to the slowing in the US residential market following the sub-prime lending fiasco.
Trading profit in Europe was much better, seeing an increase of 36.9% (although 31.4% came from the DT Group acquired last September) but, say the company, trading margin was lower “reflecting restructuring charges in the UK and Italy”.
The company spent £379m on acquisitions in the period, which are expected to add £671m in revenue in their first full year.
Commenting on the results, and the mixed performance globally, ceo Chip Hornsby said: “Despite the ongoing difficulties in the US housing market, we have produced a
very creditable performance.
“Europe continues to progress, achieving strong profit improvement and benefiting from acquisitions during the period, whilst in the US we have been fast and decisive in reducing our cost base in reaction to deteriorating market conditions.”
However, he added, “we will not be deflected from the rigorous execution of our long term strategy to create competitive advantage and a truly world class company.”